D2C E-Commerce

D2C companies sell their brands through their own website and also on marketplaces such as Amazon, Flipkart and others, through different fulfilment channels offered by the marketplaces such as 'Fulfilled by Merchant', 'Fulfilled by Marketplaces' and various hybrid channels. Collections for orders sold on their website are received from multiple payment gateways and payment aggregators. Inventory is managed at multiple company-owned warehouses, third-party warehouses and marketplace-owned warehouses. The third-party warehouses (or 'fulfilment centres') help in processing orders and inwarding customer returns. Courier partners manage deliveries, including cash collection in case of COD orders.

D2C companies end up spending a lot of time in carrying out reconciliations to make sure that collections against all orders are received correctly from marketplaces, payment gateways and, in case of COD orders, from courier partners. Owing to the complex fee structure of marketplaces and courier partners based on multiple parameters, a number of calculations need to be performed to ascertain that there is no over-charging.

Reconciling inventory movement with the transactions is important in order to identify instances of 'return-to-origin' or customer returns for which the inventory has not been received back in the warehouse and also instances of lost or damaged inventory either in the warehouse or in transit.

Due to the large number of transactions, there is also a challenge to manage the flow of transaction data from the order management system to the accounting system, especially when the two are not fully integrated. 

Reconcify assimilates data from multiple sources, performs various reconciliations and generates the following results:

1. Identifying orders not paid for by marketplaces or payment gateways

2. Identifying whether deductions by marketplaces or payment gateways match the actual return or refund transactions

3. Identifying COD orders not paid for by courier partners

4. Identifying over-charges by marketplaces, delivery partners or payment gateways

5. Identifying instances of customer returns against which the inventory has not been received back in the warehouse

6. Identifying instances of lost or damaged inventory either in the warehouse or in transit.

1. Reconcify completely eliminates the process of reconciliation and completes the process in a matter of seconds or minutes, which would have otherwise taken hours, days or even weeks, thereby freeing up valuable time and improving productivity.

2. Reconcify is fully scalable, hence with the increase in volumes, the process continues to work with an equal degree of efficiency.

3. The most significant benefit of Reconcify is plugging revenue leakages in the form of collections from marketplaces, payment gateways and courier partners, improved controls over costs in the form of the fees and charges levied by marketplaces, payment gateways and courier partners and control over inventory by ensuring timely returns of inventory against RTO orders and customer returns as well as reimbursements towards lost and damages items of inventory either in the warehouse or in transit.  In sum, D2C companies have reported a positive bottomline impact of 2% to 5% of revenues post the use of Reconcify.